As a part of yesterday’s announcement of on-line vogue platform Boohoo’s £55 million takeover of UK retail establishment Debenhams, growth into the net magnificence market was cited as one of many major drivers for the transaction. Debenhams bodily shops actually have a pedigree in the case of cosmetics and skincare, however whether or not that may be carried over to on-line on a mass scale, as Boohoo hopes, stays to be seen. It’s already a aggressive house and solely prone to grow to be extra so.
That being so, there are exemplars for Boohoo to be taught from, similar to e.l.f. Cosmetics, one of many first on-line magnificence manufacturers, launched in 2004 (the identical yr as Boohoo). The agency sells on-line in addition to by way of the cabinets of the likes of Goal and Walmart and likewise has a considerable social following, over 9 million followers on platforms similar to TikTok, Instagram and YouTube.
That latter channel is extraordinarily vital, says Bridget Barron, Director of CRM and Buyer Development at e.l.f Magnificence, who oversees CRM and loyalty for the agency’s three manufacturers – e.l.f. Cosmetics, [cruelty-free, clean beauty arm] W3LL Folks and Keys Soulcare, a brand new way of life magnificence model not too long ago launched with Alicia Keys.
Social platforms are significantly related to all three – it’s of word that Boohoo cited Debenhams social following as an asset in its acquisition – Barron explains:
We’re a giant Gen Z model, so a lot of our shoppers are in that 18-to-24 yr outdated age demographic, in all probability as a result of our massive rising presence on TikTok. We’re really one of many prime 5 favorite magnificence manufacturers of teenagers and our rating has persistently gone up. In reality in [equity research analyst] Piper Sandler’s fortieth semi-annual teen survey, we’re now ranked because the quantity two favorite cosmetics model amongst teenagers, up from quantity 4 final yr.
A brand new shopper may come throughout e.l.f. whereas shopping on social media and so they discover a video about our best-selling Poreless Putty Primer. They probably already find out about our manufacturers, possibly from recognizing us at Goal or Ulta or one other retailer. So that they head to e.l.f. Cosmetics dot.com or our cellular app after which they will discover extra in regards to the model and hopefully begin to construct a basket of merchandise along with that Putty Primer.
Barron’s function is to drive model loyalty, purchase and retain high-value shoppers via personalization at scale and ship finest in school shopper experiences throughout on-line and offline channels. On a day-to-day foundation, this entails something that touches the agency’s Direct-to-Client (D2C) clients, similar to its loyalty program, e mail, SMS, push notifications, web site personalization, shopper analytics and insights.
She additionally faucets into advertising tech, similar to Salesforce Advertising Cloud and Google Analytics 360, to construct loyalty and cross-sell further merchandise to that shopper by way of Salesforce Commerce Cloud:
We really use a number of various options and personalization ways to assist drive conversion. We use dynamic product suggestions throughout the location, based mostly on what the client is shopping or what different clients have shopped. We additionally use digital try-on, which is de facto vital for magnificence manufacturers, particularly whereas clients will not be really in shops making an attempt on merchandise. And we’ll additionally serve a pop-up to customers who’ve browsed on our web site for slightly bit and proven excessive intent to buy and can encourage them to enroll in our loyalty program and get free transport on that first order.
All of those components are subjected to AV testing with a view to enhancing on-site buyer experiences, she provides:
From there, hopefully we have now captured the consumer’s data, both e mail deal with or cellphone quantity or SMS, or possibly they’ve even downloaded our cellular app and enabled push notifications. In the event that they did not convert earlier than they left, the location will set off welcome messages throughout e mail, SMS and push, all from Salesforce Advertising Cloud, with the objective of aiding that first conversion. If the buyer did make a purchase order, then we have now two objectives – educate them on the gadgets they’ve chosen, so software and tips-and-tricks, and encourage them to affix Magnificence Squad, our loyalty program.
Members of the loyalty program make up 70% of e-commerce gross sales and have 117% greater lifetime worth than non-members, however many of those new shoppers will really not enrol in loyalty on the time of their first buy. Getting them engaged within the loyalty scheme gives e.l.f. with further levers to ensure that the agency to personalize the client expertise, says Barron:
In the event that they full their magnificence profile after signing up on our web site in Commerce Cloud, we are able to then personalize content material and product suggestions based mostly on their pores and skin kind and their pores and skin considerations and we are able to ship them a present on their birthday. We’re testing tons of different ‘loyalty member unique’ experiences on our web site as nicely. For instance, we simply launched gated product pages. We will lock sure merchandise on our web site and make them solely out there for buy by loyalty members. One other instance is that we’ll do a shock factors drop or we could drop sufficient factors right into a shopper’s account to redeem a reward on their order, however they solely have 48 hours to assert it.
Utilizing Google Analytics 360 integration with Salesforce Advertising Cloud empowers new methods to have interaction with audiences, she explains:
our shopper knowledge, we have been in a position to uncover that buyers who purchase skincare from us have the next lifetime worth by over 100%. A few of our prime retention merchandise are literally skincare and we see that skincare consumers are buying extra regularly as nicely, about 65% extra usually than non-skincare consumers. This yr we have really seen extra clients shopping for skincare with us than ever earlier than. So there’s lots of alternative there. In Google Analytics 360, we are able to determine audiences that will have a excessive propensity to buy skincare. Perhaps they browse a number of skincare pages on our web site or they’ve accomplished a skincare finder quiz or they took one other motion that reveals they could be desirous about skincare.
Using Google Analytics 360 has additionally uncovered some new alternatives that the agency may not have seen in any other case:
Lately we have seen a slight enhance in males on our web site, largely buying make-up, however there’s undoubtedly a possibility there to attach this viewers with related suggestions for them in make-up and in skincare. It additionally alerts that there is doubtlessly a possibility for us to attempt to purchase extra male clients to skincare and to different classes. Our efforts thus far have led to a two-times enhance in skincare consumption and we undoubtedly wish to proceed to gasoline that development.
Information from Google Analytics 360 permits e.l.f. to construct audiences based mostly on these teams who can then be imported into Advertising Cloud’s Journey Builder, the place they are often re-targeted with advertisements and emails. Barron explains:
For instance, we’d cookie a consumer who has a excessive propensity to skincare, however we haven’t any different data on them. We will take this viewers in Google Analytics and we are able to push it to social media platforms or we are able to serve advertisements to affix our e mail record and get a suggestion on their first skincare order. This lead seize type will then submit that sign-up straight into Advertising Cloud, the place the consumer will enter our Welcome Collection and the place we are able to share instruments and suggestions to drive that first conversion.
One other actually attention-grabbing characteristic that we use in Google Analytics is the power to create objectives that may be arrange in Advertising Cloud for every of our journeys in Journey Builder. Typically the objective shouldn’t be all the time to drive that rapid conversion. As an example, the first objective of considered one of our journeys is likely to be to get a consumer to enroll in loyalty. We will create a objective for this occasion on our web site in Google Analytics after which we are able to carry that into our loyalty acquisition journey in Advertising Cloud and monitor what number of sign-ups this specific marketing campaign is producing for us. We will create objectives actually round any occasion that we’re monitoring in Google Analytics and every journey can have a number of objectives.
Barron says that if she had “a magic make-up brush”, her objective for e.l.f. can be the creation of a single shopper journey with Advertising Cloud, the place the staff can see and management all the shopper contact factors throughout all of its advertising channels:
We actually need our lifecycle campaigns to embody each advertising channel that the client interacts with, not simply e mail or SMS, but additionally our web site content material, paid media and paid social channels, our app and push notifications and even offline channels, like junk mail. What we wish to do sooner or later can also be create channel propensity fashions that may decide the place a buyer is probably to reply and convert after which serve them their message of their most popular advertising channel.
There may be lots of potential right here, she attests, significantly in relation to Google Analytics audiences:
We may change out our web site homepage and drive in direction of Skincare Finder if we all know that this shopper has been window purchasing and shopping skincare with us for a while. I feel that over time we’ll actually get to real-time variations of the client journey as a consumer’s conduct adjustments and so they transfer into a special stage of their lifecycle.
As they transfer from being a brand new shopper desirous about lip gloss to an energetic loyal shopper who is likely to be searching for her or himself and possibly a member of the family, we are able to immediately determine the viewers in Google Analytics and shift them right into a journey that’s related for the present stage that they are in. This is likely to be from onboarding and training round our model to cross-selling, replenishment reminders or loyalty, to ‘shock and delight’ rewards particularly designed for that shopper. A future imaginative and prescient for us is de facto to design shopper personas based mostly on all these completely different interactions and Google Analytics and our different first social gathering knowledge after which allow new advertising campaigns and journeys based mostly on these persona segments.